While my adapter works, I too am a bit puzzled that the fit and finish is not ideal. It sticks out a bit, fan is extremely loud, and overheats like a mofo. Dealer says it's normal, so I guess it is...
One thing I noticed: If you leave an AUX cable plugged in, it will overwrite the sound source. I had a passenger that wanted to play some tunes through his phone and we used the AUX cable, which I left plugged in after he left. I lost Audio for the BMW Apps Web Radio. At first I thought the adapter crapped out, but luckily I found the issue - disconnected the cable and vola - all back to normal.
2011 BMW E82 1///M: AW, ZPP+ZCV, HK, Apps; Akra CF+Valve control, MadDad mids, K&N, Forge FMIC, P3gauge, EuroTails, Tint, CF Mirrors+Spoiler+Roof+RevoZ diffuser, 10mm H&R, IND grills+gills, xCDV, LUX AE
2008 Audi B7 RS 4: Sprint Blue, Audi Exclusive Euro Interior, Premium+Titanium Package, EPL Tune, Stasis Ohlins MS coilovers, Milltek valved exhaust+DownPipes, Alcon BBK, Tint, ADR V1, Lidatek, Lamin-X, Strasse Forged SM7 3-piece concave wheels, 275/30/19 PSSs, Euro flat-bottom steering wheel, JHM SSK